The Congress party, India’s main opposition, has once again turned to the Delhi High Court, this time challenging an order by the Income Tax Department to initiate assessment proceedings for the past three years against the party. The plea was mentioned before a bench led by Acting Chief Justice Manmohan, with advocate Prasanna S representing the Congress party. Prasanna highlighted that the Income Tax Department has begun reassessment procedures for the tax details of the past three years and requested a hearing on the matter.
This legal move comes shortly after the Delhi High Court, last Wednesday (March 13), upheld an order by the Income Tax Appellate Tribunal (ITAT) which dealt a significant blow to the Congress by refusing to stay a notice issued by the Income Tax Department for the recovery of taxes exceeding ₹100 crores.
However, the High Court granted the Congress party the liberty to approach the ITAT with a new stay application after it was brought to the court’s attention that an amount of ₹65.94 crores had already been recovered by the Income Tax Department following the encashment of a bank draft.
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The Congress had sought the High Court’s intervention against the refusal by ITAT to stay the recovery notice issued by the Income Tax Department on February 13. According to the assessment officer, the party’s income for the year 2018-19 was over ₹199 crores, based on which a tax demand exceeding ₹100 crores was made.
